Mortgage & Commercial Lending News.

Topics: Hard Money Loans

Topics: Home Sales

What is a “flipping” a house?  A flip is a residential investment when a house is purchased in bad condition, intending to renovate and/or remodel. This is also the process called Fix and Flip Loans and is then listed for sale for a profit.  

So what can be some of the challenges when purchasing a home to flip?  These types of investments have many moving parts, so savvy investors will know how to look at the deal from different angles. The purchase price can be as important as the renovation budget or the contractor you pick. The typical variables such as location come into play, along with making renovations that are comparable to what is popular in its proximity. Following are some pointers to follow when venturing into flipper territory.

1. Research the Prior Condition of the Subject Property

It’s important to know as much as possible about the home before moving forward with the purchase of real estate investing to fix and flip loans.  Oftentimes times, flipped homes are foreclosures from banks. Bank-owned properties often sit vacant for extended periods, resulting in several possible things that can go wrong with the property. Has the home been vandalized? Copper wiring/plumbing removed? Did the pipes burst?  If there is moisture in a home, mold? These are all items that can have a considerable effect on the cost of the repairs, therefore making them key in the success of the transaction. 

2. Know who you’re working with

Topics: Specialty Loans, Foreclosure, Tips, construction loans, residential investment

Topics: Hard Money, Hard Money Loans, Low Documentation Loans, Houston Commercial Loans

Topics: Hard Money, Hard Money Loans, Residential Loans

Many believe that getting a construction loan is a difficult process. In some cases, this assumption is correct; however, with the right tools and information, getting approved for a construction loan is possible. Often times it’s a matter of finding the right loan from the right lender. Hard money lenders have become prime candidates for construction financing. Even though they offer higher interest rates, the actual difference in cost is usually not detrimental to the project since they are usually be held for short periods of time; for this reason it’s imperative to have a clear exit strategy before considering a construction loan.

Topics: Hard Money Loans, Houston Commercial Loans, construction loans

Topics: Hard Money, Hard Money Loans, Houston Commercial Loans, Specialty Loans

Topics: Hard Money, Low Documentation Loans, Tips